Construction Loan Interest Calculator

Estimate interest paid during the construction phase.

New Funds Needed for Construction ($):

Annual Interest Rate (%)

Construction Period (Months)

Do you own this property? (Is this a refinance?)

Amount you owe on home:

If refinancing, interest will be estimated on the sum of new funds and this amount owed.

Interest Calculation Method

Choose how to estimate interest:
• Gradual Draws (Typical Estimate): Assumes funds are drawn steadily throughout construction. We estimate interest based on an average outstanding balance of 50% of the total loan. This is a common approximation.
• All Funds Upfront (Max Interest Estimate): Calculates interest as if the entire loan amount is disbursed and accrues interest from day one. This will show a higher interest cost and can be useful for a conservative estimate.

Construction Loan Interest Calculator

Estimated Interest Costs